What's the need for DecentraSound and NFTs in 2022?
As an Artist, do you own your content? Suppose you’re Jason, a talented musician. You upload a new song to Spotify, and it gets 1 million streams. Unfortunately:
1. Intermediaries take most of your earnings: Spotify only pays $4,000 for 1M plays. After other intermediaries (e.g., record label, management) take their cut, you’re left with just $800.
2. Intermediaries own your content rights: Like many new artists, you gave up your song’s rights to the record label. Without your song’s rights, you can’t even perform it live to fans without your label’s approval.
3. Intermediaries control how many fans see your content: Spotify can change its discovery algorithms or even take down your content at any moment.
Intermediaries help you create content, reach fans, and make money. But they also capture most of the value of your content. Many artists, through time, have had to re-record their songs to own their music officially. NFTs are an exciting new way for Creators to make money. They let fans own content and directly invest in a Creator’s success.
Jason created a song and listed it within DecentraSound as an NFT. He’s selling its ownership to fans for $30,000. When fans resell Jason’s music, he gets 10% of the sale price.
A fan buys your NFT for $30,000. The marketplace takes 15%, so you earn 85% or $25,500. After a month, they resell it to another fan for $40,000 (you make 10% or $4,000 in royalties). Instead of only making $800, you’ve earned $29,500 from just two transactions.
As we all know, most people buy NFTs to make money.
Today, we define a super fan as someone who spends money to have authentic interactions with the creator. NFTs make it possible for super fans to make money by owning content that can appreciate with the creator.
Suppose you paid $30,000 to buy an NFT from an unknown up-and-coming artist. If that artist became famous a year later, you could sell the same NFT at a much higher price. NFTs are an exciting new way for Creators to make money. They let fans own content and directly invest in a Creator’s success.
Like stocks, NFTs and the DecentraSound ecosystem will allow fans to bet on the creator’s potential while enjoying what they are paying for in the form of Music and a vast array of utility that may be attached to purchasing that art/music.
DecentraSound will allow The Creator to create an unlimited number of NFTs. However, it would be best if they thought through how many editions of the same NFT they want to issue:
- 1-of-1. The Creator only issues one copy of the NFT, which makes it more valuable. Think Mona Lisa – there are many copies of the painting, but only one original piece is hanging in Louvre.
- Edition. The Creator issues many copies of the same NFT. Think of it as releasing a sneaker drop where they have a limited amount of the same trainer to create scarcity and hype.